Read The Times Australia

Daily Bulletin

Government gives Greens $100 million for Landcare to get backpacker tax deal

  • Written by: Michelle Grattan, Professorial Fellow, University of Canberra

The backpacker tax deadlock has been broken with a deal between the government and the Greens for a 15% rate that will be lower in effective terms because backpackers will keep extra superannuation.

The agreement was reached after a stand-off between the government, which refused to budge from a proposed 15%, and key crossbenchers, who wanted a 13% rate. Labor had also moved from its earlier support for a 10.5% rate to 13%.

As a sweetener, the Greens have secured A$100 million for Landcare, a program that helps farmers with natural resources management, weeds and pest control.

The legislation needed to be rushed through before parliament rose for the year to prevent backpackers from having to pay a 32.5% tax rate.

The settlement follows days of confusion, with key players changing position, and months of uncertainty for farmers. At the weekend the government had insisted it would not compromise from its then-position of a 19% rate.

Under the agreement, instead of backpackers being taxed at 95% on their superannuation, as the government had proposed, they will now be taxed at 65%.

Greens leader Richard Di Natale said that with the 15% rate “this amounts to a revenue neutral solution which will be equivalent to the 13% tax rate offered by Labor and the crossbench”.

Treasurer Scott Morrison said the cost to revenue of the superannuation concession would be $55 million over the forward estimates.

He flagged that the budget update would make good the total $155 million that had been ceded in the deal.

Morrison said the final backpacker arrangements would contribute $560 million net to the budget, almost 74% of the revenue the original budget measure would have raised over the current forward estimates.

He said the agreement was an example of the government being “able to get things done” in this parliament.

The government had always been looking to get an outcome “but not any outcome”, he said. It wanted to ensure there was a rate that was compatible with other areas of the tax system.

But Shadow Treasurer Chris Bowen told parliament Morrison was “so determined not to give in to this side of the House that he does a deal with the Greens, which is worse for the budget than the deal with us would have been”.

Opposition Leader Bill Shorten said: “This is a bigger tax at a bigger cost.” Malcolm Turnbull was “spending $100 million more so he can have a higher rate of backpacker tax. It goes to show Malcolm Turnbull will pay any price to anyone.”

Di Natale described it as “a great day for farmers and for the environment … We’ve ensured that backpackers will continue to come to this country and provide the really important workforce that this country needs.”

Asked about the Landcare money, Turnbull praised the program and said the government was extremely pleased to be able to provide the extra funding.

The Greens said they started negotiating with the government on Thursday when it became clear it would not accept a 13% rate. “The government made it very clear they weren’t going to budge,” Di Natale said.

The National Farmers’ Federation welcomed finality being reached.

Authors: Michelle Grattan, Professorial Fellow, University of Canberra

Read more http://theconversation.com/government-gives-greens-100-million-for-landcare-to-get-backpacker-tax-deal-69724

Business News

When Should You Speak to a Lawyer About a Legal Issue?

Legal issues can begin with a simple question, then become harder to manage once formal steps are involved. Many people wait until a matter feels urgent before seeking guidance, even though earlier ...

Daily Bulletin - avatar Daily Bulletin

The strategic rise of Bali as Australia’s next essential healthcare support hub

As Australian healthcare providers grapple with unprecedented operational bottlenecks, a new nearshore model is quietly transforming patient care delivery. Forward-thinking organisations,  including...

Daily Bulletin - avatar Daily Bulletin

Cost Savings and Benefits of Using Used Pallets in Logistics

In today’s competitive logistics and supply chain industry, businesses are constantly looking for ways to reduce operational costs without compromising efficiency and reliability. One of the most prac...

Daily Bulletin - avatar Daily Bulletin

How Fulfilment Services in Australia Help Businesses Scale Efficiently

The growth of e-commerce and modern retail has transformed customer expectations. Consumers now expect fast shipping, accurate order processing, and seamless delivery experiences regardless of where...

Daily Bulletin - avatar Daily Bulletin

Practical Ways Australian Workplaces Can Reduce Operating Costs

Reducing business costs doesn’t always mean cutting staff, shrinking services or making the workplace feel bare-bones. In many cases, the smarter savings are hiding in everyday operations: the light...

Daily Bulletin - avatar Daily Bulletin

Executive Recruitment Solutions That Help Organisations Secure Exceptional Leaders

Leadership has a direct impact on organisational performance, employee engagement, strategic growth, and long-term success. Businesses operating in increasingly competitive environments require experi...

Daily Bulletin - avatar Daily Bulletin

Why A WooCommerce Website Designer Matters For Online Growth

Running an online store today requires more than simply listing products and waiting for customers to arrive. Businesses need a website that is fast, reliable, easy to navigate, and designed to suppor...

Daily Bulletin - avatar Daily Bulletin

Turning Your Empty Tables into Revenue

The rise of AI demand tools in hospitality, the EatClub–CommBank partnership, and seven trends reshaping Australian dining  A growing number of Australian venues are turning to AI-powered demand mana...

Daily Bulletin - avatar Daily Bulletin

High-Impact Dental Marketing Strategies That Are Driving Real Practice Growth Today

The landscape of dental practice growth in Australia has shifted dramatically over recent years. Standard, broad-spectrum advertising campaigns no longer yield the return on investment they once did. ...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

Lighting Shop in Perth: How The Right Lighting Can Transform Your Home And Business

The right lighting can completely change the look, feel, and functionality of any space. Whether it ...

Traffic Light System Solutions For Safer And More Efficient Traffic Management

Modern cities and growing communities rely heavily on effective traffic management to ensure safety...

Gold Migration Lawyers in Liquidation: How the Closure Affects Your ART Appeal

If your appeal was with Gold Migration Lawyers, a recent change to how the Tribunal decides cases ...

The pressure cooker: life in urban Australia in 2026

Australian cities have always been demanding. Long commutes, rising housing costs, busy schedules a...

What Actually Makes a Good Criminal Lawyer in Melbourne

Most people only think about this question once. That is usually too late. Most people charged wi...

Why Working With A Chatswood Tutor Can Improve Academic Performance

Academic expectations continue increasing for students across primary school, high school, and senio...

Is It Worth Getting Solar Panels in Melbourne?

The real question is not whether solar works in Melbourne. It works. The question is what it is co...

How A Diploma Of Project Management Builds Practical Skills For Modern Work Environments

Developing the ability to plan, execute, and deliver outcomes efficiently is a key requirement in to...

How to Choose the Right Football for Every Level

Choosing a football may seem straightforward, but the right option depends on who will be using it a...